This particular period is notorious for rumors, stocks and commodity upgrades/downgrades, and sometimes very volatile, abnormal stock and commodity activity. Every month the major financial institutions try to figure out where the weak money bets have been placed in the options market. These market moving financial institutions will then bet against that group of weak hands and take the market in the opposite direction. In other words, if the institutions can figure out where the majority of small retail option traders are betting on the near term contract, they will usually cause that options contract to trade out of the money or worthless by Friday.
Just a quick tip, don't trade the near term contract that is about to expire.
Some leading stocks that are usually some of the most volatile during options expiration week include Apple Inc (AAPL), Green Mountain Coffee Roasters Inc (GMCR), First Solar, Inc (FSLR), Netflix Inc (NFLX), Coinstar Inc (CSTR and others. These stocks mentioned are notoriously susceptible to unusual market activity due to rumors, unusual upgrades and downgrades, and erratic volatility throughout the trading week.
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